The value of Kilburn leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the unexpired lease term is less than eighty years
Leasehold premises in Kilburn with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle Kilburn lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Harrison was the the leasehold proprietor of a high value apartment in Kilburn on the market with a lease of fraction over 72 years remaining. Harrison on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Harrison to invoke his statutory right. Harrison procured expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Last Christmas we were approach by Dr G Sharif , who owned a basement flat in Kilburn in August 1995. The question was if we could approximate the price could be to extend the lease by an additional years. Comparative flats in Kilburn with 100 year plus lease were in the region of £300,000. The average ground rent payable was £50 collected monthly. The lease concluded in 2101. Taking into account 76 years remaining we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.
An example of a Freehold Enfranchisement decision for a Kilburn property is 4 & 4A Charteris Road in June 2009. the Tribunal held that the price to be paid for the enfranchisement of 4/4a Charteris Road to be £15,510 for at 4and £15,694 for at 4a This case related to 2 flats. The number of years remaining on the existing lease(s) was 70.02 years.